Money Market Deposits
A Money Market deposit holds the surplus cash element of your SIPP portfolio at a fixed rate of interest over an agreed period. By committing cash for longer you are often able to improve returns compared to holding all cash in an instant access account. The bank will publish indicative rates here on a weekly basis to provide an indication of the types of return available. The nature of the product is such that rates do change throughout the day - but once you "book" a rate through the bank it is then guaranteed for the duration of your chosen investment period.
Key Benefits:
- Interest is earned from the day cleared funds are placed on deposit.
- Flexibility - fixed terms can be tailored to your requirements.
- Security - money is secure with RBS, part of The Royal Bank of Scotland, one of the world's largest financial services groups.
- Convenience - deals can be conducted by telephone and monies placed straight away.
- As the interest rate is fixed for the duration of the term, interest rate risk is managed better compared to for instance holding all cash instant access with returns linked to floating Base Rate.
Key Features:
- Range of deposits - Overnight to12 months is available to suit your requirements.
- Interest calculated daily and paid upon maturity.
- Minimum deposit is £25,000
Indicative Rates:
| Investment Term | 1 Month | 2 Months | 3 Months | 6 Months | 12 Months |
| Sterling Gross Indicative Rate % | 0.25% | 0.30% | 0.36% | 0.68% | 1.13% |
In exceptional circumstances, and at their absolute discretion, the bank may let you terminate a deposit deal early. Where they allow this, the deposit must be withdrawn in full. Partial withdrawals are not allowed. However, a lesser amount may be reinvested at renegotiated terms.
In such cases, your payment of interest may be reduced and the amount of the reduction will be advised to you. If this reduction is more than the interest earned, the bank will debit the shortfall to your instant access account.